Dart Group Corp. announces net operating loss.LANDOVER Landover can refer to:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DARTA), announced that for the year ended Jan. 31, 1996, it incurred a net loss of ($13,424,000) equivalent to $(7.88) per share compared to a net loss of ($73,792,000) or $(39.57) per share for the year ended Jan. 31, 1995. Dart dart see blow dart. dart gun see blow dart. owns 67% of Trak Auto Corp., 51% of Crown Books Crown Books was a bookseller based in Largo, Maryland. It was founded in the Washington, D.C. metro area by Robert Haft in 1977. History Overview Crown Books was founded in the Washington, D.C. Corp., 100% of Total Beverage Corp., 100% of Cabot-Morgan Real Estate Co. ("CMREC CMREC Central Maryland Research and Education Center (University of Maryland College of Agriculture and Natural Resources) ") and 50% of Shoppers Food Warehouse Corp. Dart's financial statements are consolidated with Crown Books, Trak Auto, Total Beverage and CMREC (collectively, the "Company"). The accounts of Shoppers Food are consolidated with Dart through May 28, 1994, but not thereafter, as a result of a reduction of Dart's ownership interest to 50%. Trak Auto today reported net income of $7.3 million for its fiscal year ended Feb. 3, 1996 compared to net income of $10.3 million in the year ended Jan. 28, 1995. Crown Books today reported net income of $3.7 million for its fiscal year ended Feb. 3, 1996 compared to a net loss of $19 million in the year ended Jan. 28, 1995. The net loss in fiscal 1995 resulted in part from $18.9 million charged to the Company's closed store reserve. The improved earnings in fiscal 1996 resulted primarily from the reversal of $8.9 million in the Company's reserves for closed stores and restructurings. Before the reversal of a closed store reserve, Total Beverage had a net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $2.4 million in fiscal 1996. In fiscal 1996, Dart recorded a loss of $14.5 million for the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. to fair market value of five properties that CMREC owns through joint ventures with partnerships in which the partners are members of the Haft family. Dart's investment in Shoppers Food Warehouse is reflected in Dart's financial statements using the equity method of accounting. In fiscal 1996, Dart recorded an increase of $10 million in its equity in Shoppers Food Warehouse. Also in fiscal 1996, Dart received a $5 million dividend from Shoppers Food Warehouse. The Company's net loss in fiscal 1995 was primarily attributable to a judgment awarded to Robert M. Haft (see below), reserves taken for future store closings and abandoned warehouse facilities, and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and related costs. Consolidated revenue for the 12 months and 3 months ended Jan. 31, 1996, totaled $678,136,000 and $199,333,000, respectively, compared to $967,428,000 and $197,681,000 for the 12 months and 3 months ended Jan. 31, 1995, respectively. Revenue for fiscal 1996 was affected by the fact that the accounts of Shoppers Food Warehouse are consolidated with Dart's through May 28, 1994, but not thereafter, as a result of a reduction of Dart's ownership to 50%. Largely because of the ongoing program to close unprofitable stores, comparable sales of Crown Books, Trak Auto and Total Beverage, comparable sales decreased 2.8% and .3% for the 12 months and 3 months ended Jan. 31, 1996, compared to the 12 months and 3 months ended Jan. 31, 1995, respectively. There are related programs in Trak Auto, Crown Books, Total Beverage and Shoppers Food Warehouse to open new prototype stores. Dart believes that litigation between the Company and Haft family members has had an adverse impact on the Company's results of operations, financial position and liquidity. During fiscal 1996, a settlement of certain litigation between Dart and Ronald S. Haft reduced cash by $50 million and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. by $56 million. Also during fiscal 1996, in connection with the settlement with Ronald S. Haft and litigation involving Haft family members, the Company paid approximately $12.4 million in legal fees. During fiscal 1995, a jury awarded $32 million (plus interest) to Robert M. Haft in his lawsuit lawsuit: see procedure; tort. against the Company for breach of employment contracts. If the Company loses its appeal and is required to pay the judgment to Robert M. Haft, then the Company's liquidity would be significantly reduced and the liquidity of the Company could be impaired. Trak Auto currently operates 273 parts stores including 111 Super Trak stores and 31 Super Trak Warehouse stores in the Washington, D.C.; Richmond, Va.; Chicago; Pittsburgh; and Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. metropolitan areas. Crown currently operates 167 book stores including 86 Super Crown Books stores in the Washington, D.C. area; California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). ; Houston; Chicago; and Seattle. Shoppers Food Warehouse operates 34 stores in the Washington, D.C. metropolitan area. Total Beverage currently operates 3 beverage superstores This is a list of superstores by country. Multi-national
For further information, see Dart's 1996 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , which was filed today with the Securities and Exchange Commission. -0-
Dart Group Corp.
(in thousands)
(except earnings per share)
Three Months Ended Twelve Months Ended
Jan. 31, Jan. 31, Jan. 31, Jan. 31,
1996 1995 1996 1995
-------- -------- -------- --------
Revenue(a) $199,333 $197,681 $678,136 $967,428
Income (loss) before income taxes, equity in affiliate and minority interest $ (814) $ 3,822 $(12,683) $(79,721) Net loss $ (501) $ (9,155) $(13,424) $(73,792) Loss per share $ (.57) $ (4.87) $ (7.88) $ (39.57) Weighted average shares outstanding 2,074 1,879 1,862 1,871 (a) Reflects the accounts of Shoppers Food Warehouse as consolidated through May 28, 1994, but not thereafter, as a result of a reduction in Dart's ownership to 50%. Subsequent to May 28, 1994, Dart's investment is reflected in the financial statements using the equity method of accounting. CONTACT: Dart Group Corp. Marina Marina “a piece of virtue.” [Br. Lit.: Pericles] See : Virtuousness Ein, 202/223-2922 |
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